salvage value

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Salvage value

Scrap value of plant and equipment.

Residual Value

In accounting, an estimate of the value of an asset at the end of its depreciation. For example, a firm's computer depreciates each year. When it breaks down or becomes obsolete, it has a residual value; it is calculated by the best guess of the net cash inflow when it is sold at the end of its life. It will never be above the blue book value.

In price regulated industries, the residual value may be a negative value because it includes the net cash outflow in removing the asset from where it was used. For example, nuclear energy plants must store the nuclear waste at the end of their useful life. This cost is a contributing factor in the residual value. It is also called the salvage value or scrap value. See also: Absolute Physical Life, Obsolescence.

salvage value

salvage value

see SCRAP.

salvage value

The estimated value a property will have at the end of its useful life. (1) It is an important consideration when demolishing a structure in order to build a new one.Especially with older buildings,architectural components such as molding,trim,doors and hardware,windows,and even antique brick can command a very high price.(2) It was important at one time for income tax depreciation,but there is now a different system in place,the modified cost recovery system,which does not rely upon establishing a salvage value.

Salvage Value

The estimated value that will be realized upon the sale or other disposition of an asset at the end of its useful life.
References in periodicals archive ?
Meanwhile, the need to reconsider the estimated remaining useful lives and salvage values of depreciable assets, particularly in connection with periodic impairment assessments, was reinforced in paras.
We assume that management offers four discounts and four upgrades before offering the product at salvage value.
Moreover, the sensitivity of project under consideration is determined for several important factors like capital investment, net revenue gain, operational cost and salvage value and from the findings it is concluded that the proposed investment is highly sensitive to variation in net revenue gain.
Although the committee reports to ERTA directly address salvage value, they are vague on whether the useful-life standard has been legislated into oblivion.
The new equipment would cost $360,000 to acquire with an installation cost of $60,000 and have an economic life of seven years and a salvage value of $60,000.
Most systems have a disposal cost that is offset by some degree of salvage value, and in some cases, salvage value exceeds the disposal cost.
F] is equal to the difference between the product cost v and the unit salvage value s.
Fifty years ago, at a council meeting, the parks committee was told the beautiful and historic building known as Marton Hall, built as a home for one of our founding fathers, "should be pulled down before all salvage value is lost through deterioration of the structure".
Excel will basically use a plug figure in the final year of a DDB table to ensure the asset is depreciated to the salvage value.
Entire neighborhoods, commercial zones and pathways were going dark because wire thieves were systematically stripping the copper wire for the city's street lighting systems for the salvage value.
Third, if the bill is passed, the annual after-tax cash flow from operating the hybrid car is estimated to be $10,000; assume, too, a net-of-tax salvage value of $5,000 for the hybrid car at the end of year four.
0] denote the current replacement cost of the asset (new) net of salvage value (7), the last equation can be written as follows: (8)